All posts tagged: debt

Energy price cap to fall but bills to include ‘temporary’ charge to help tackle record debt | Business News

Energy price cap to fall but bills to include ‘temporary’ charge to help tackle record debt | Business News

The energy price cap is to fall by £20 a month, the industry regulator has announced, but households are to face an additional “temporary” charge to help suppliers support struggling customers with record levels of debt. Ofgem confirmed a 12% price cap reduction will take effect from 1 April, taking the annual energy bill for a typical household paying by direct debit for gas and electricity to £1,690. The current level, in place from January to March, is £1,928. The fall reflects lower wholesale prices, with natural gas costs over the peak winter season falling across Europe due to higher stockpiles. Read more:Energy price cap reduction – live reactionWhy the cap has come down in ‘new normal’ A mild winter has been a factor in the drop. The adjustment by Ofgem, while some relief for household budgets squeezed by the tough economy, still leaves the cap more than 50% up on pre-crisis levels. The regulator confirmed alongside the cap figure that it was taking action to tackle a record £3.1bn in bill arrears, though prepayment …

The wall of public debt that Americans do not want to see

The wall of public debt that Americans do not want to see

At Fed headquarters in Washington, February 2018. ANDREW HARNIK / AP When Wall Street goes, everything goes. In the fall of 2023, Americans were gripped by panic: Interest rates were soaring above 5% for the first time since 2007, while the public deficit was out of control, amounting to $1.695 billion (€1.573 billion), or 6.3% of gross domestic product (GDP), for the fiscal year ending September 30, 2023. Olivier Blanchard, a French neo-Keynesian economist and former chief economist at the International Monetary Fund (IMF), even issued a warning about a potential “explosion” in debt levels. Subsequently, interest rates gradually decreased as inflation dropped, settling at around 4.1%. Concurrently, the stock market soared: The S&P 500 index, a benchmark for large companies, has surged 20% since the October 2023 low. Since then, the cost of borrowing has fallen again and tax revenues are on the rise again thanks to stock market capital gains. As a result, the deficit is set to fall back to $1.6 trillion for the fiscal year ending September 30, 2024, according to …

Biden Attends L.A. Fundraiser, Talks Student Debt Relief

Biden Attends L.A. Fundraiser, Talks Student Debt Relief

President Biden visited Los Angeles on Tuesday and Wednesday, attending a fundraiser in Beverly Hills and speaking about student loan forgiveness in Culver City. Biden attended a fundraiser Tuesday night at the home of Israeli-American businessman Haim Saban. However, Saban and his co-host, Casey Wasserman, were unable to attend the event as they both reportedly tested positive for COVID-19. Biden wished them “the quickest recovery” during his remarks to the crowd.   In his speech to supporters, which included actress Jane Fonda, Biden focused on the future and “finishing the job,” hitting on topics such as lowering drug prices, the Affordable Care Act, reproductive rights, the GOP and Donald Trump. “Time and again, Republicans show they’re a party of chaos and disunion,” Biden said to the crowd. “They have no platform,” he later continued. In his speech to the crowd, the president noted that he’s been “doing this a long time” and was hopeful for the future. “The fact of the matter is, and I say this from the bottom of my heart, I’ve never …

The Eye-Watering Number Of UK Parents Going Into Debt Over Child Care Costs

The Eye-Watering Number Of UK Parents Going Into Debt Over Child Care Costs

It’s no secret that childcare costs are extortionate and coupled up with the cost of living crisis, parents are struggling to financially survive. In fact, nearly half of parents in England are facing childcare debts. 45.9% of parents with a child under the age of five-years-old say they have either had to tap into their savings to pay for childcare or have accrued debt, according to new research from Pregnant Then Screwed, in partnership with Women In Data®. The data has been compiled after Pregnant Then Screwed surveyed 35,800 parents. The report found that 1 in 5 parents, 21.5%, with a child under the age of 5 was forced to withdraw money from their savings and pension to pay their childcare bill. 37.1% said they had to use their credit cards, take out a loan or borrow money from family or friends. For single parents, the figures rose even more sharply. Of those with a child under five-years-old, almost two-thirds, 66.5%, accrue debt to pay for childcare, including 50% who borrow money, and 31.3% who …

Niger defaults on debt payments again as post-coup woes pile | News

Niger defaults on debt payments again as post-coup woes pile | News

The West African state’s total debt default since last July’s coup is now $519m. Niger missed a debt payment of 13.4 billion CFA francs ($22m) last week, the West African debt management agency said on Monday, bringing the total default to some $519m since a July coup and its suspension from regional financial markets. The West African monetary union debt management agency UMOA-Titres said in a statement that Niger had failed to make a repayment of principal which was due on February 16. It previously missed payments in August, November, January and February. UMOA-Titres noted that this occurred in the context of Niger being subject to sanctions imposed by the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union, also known by its French acronym UEMOA. “This situation is carefully monitored by UMOA-Titres in collaboration with the institutions concerned,” the agency said in a statement on Monday. The sanctions were imposed after the July 30 coup by members of the Nigerien presidential guard, that overthrew President Mohamed Bazoum. Other …

France to cut spending by extra €10B as growth forecast drops – POLITICO

France to cut spending by extra €10B as growth forecast drops – POLITICO

PARIS — The French government said it would reduce spending in 2024 by an extra €10 billion as the French economy is growing slower than expected. “We earn less, we spend less, it’s a rule of common sense,” French Economy and Finance Minister Bruno Le Maire told reporters Monday, citing increased interest rates and geopolitical tensions including the wars in Ukraine and Gaza as reasons for the economic slowdown. Last year, Paris outlined its spending plans for 2024 assuming that the economy would grow by 1.4 percent — an estimate France’s High Council of Public Finances, an independent watchdog, then deemed overoptimistic. Source link

Russia’s war in Ukraine is igniting an old debate in Brussels over debt

Russia’s war in Ukraine is igniting an old debate in Brussels over debt

French President Emmanuel Macron welcomes Ukraine’s President Volodymyr Zelenskyy and German Chancellor Olaf Scholz for a meeting at the Elysee Palace in Paris, France, February 8, 2023. Sarah Meyssonnier | Reuters Munich, GERMANY — Should we borrow from global markets as one combined entity and raise new debt together? That’s the question hanging on the shoulders of EU officials as they promise to spend more on defense amid Russia’s onslaught in Ukraine. This debate is not new — and it is historically complex. For many years, EU nations that were traditionally more conservative over how they spend their money did not want to tap capital markets together with the rest of the bloc. They feared that ultimately their fiscal prudence would be jeopardized by other nations with looser ideas of how to spend cash. However, in 2020, the 27 members of the European Union decided that the best way to deal with the financial and extraordinary impact of the Covid-19 pandemic was to jointly raise debt. Now almost four years down the line, some EU …

Having a kid feels ‘like financial suicide’ as more parents take on debt to pay for childcare – report says | UK News

Having a kid feels ‘like financial suicide’ as more parents take on debt to pay for childcare – report says | UK News

Having a child “feels like financial suicide” for parents, the head of a charity has said, after a study found more Britons are taking on debt to pay for childcare. Commissioned by campaign group Pregnant Then Screwed, the survey said almost half of parents of under-fives in England say they have taken financial blows as the cost of childcare bites. Speaking after the study was released, the charity’s founder Joeli Brearley said that as well as a cost of living crisis, “we’ve got a cost-of-working crisis that disproportionately impacts mothers”. She said many parents who want to have more children “cannot afford to do so”, and added: “Being a parent is tough enough, but when having more children means sacrificing your income, procreation feels like financial suicide. “If we aren’t careful, becoming a parent will be a luxury item, and the economy can’t afford to pay that price.” The government’s Money Helper website says on average, the cost of sending a child under the age of two to nursery full time is now £269.86 a …

Desperate Egypt sells off historic hotels as it dives deeper into debt | Egypt

Desperate Egypt sells off historic hotels as it dives deeper into debt | Egypt

As dusk fell over the verdant grounds of the Marriott Mena House hotel, the reflection of the Great Pyramid of Giza grew darker in a pool built to reflect the last of the seven wonders of the world. A band played a smooth jazz rendition of the Eagles’ Hotel California on the grassy lawns as guests assembled for dinner, while the staff attempted to project a sense of business as usual, despite the hotel’s recent acquisition by an infamous Egyptian real estate tycoon, Hisham Talaat Moustafa, and two powerful Emirati conglomerates. The sale of Mena House and six other historic hotels – financed by the Emirates – is part of what Timothy E Kaldas, an analyst of Egypt’s struggling and often opaque economy, termed “an underwhelming fire sale” of state assets, as the government clamours for cash injections while diving deeper into debt. Moustafa is Egypt’s largest real estate developer, whose business empire has witnessed a rebirth since his release from prison in 2017, after President Abdel Fatah al-Sisi pardoned him of a murder conviction. …

IRS Sues FDIC Over Silicon Valley Bank’s .4 Billion Tax Debt

IRS Sues FDIC Over Silicon Valley Bank’s $1.4 Billion Tax Debt

(Reuters) – The U.S. Internal Revenue Service on Tuesday sued the Federal Deposit Insurance Corporation, asking a judge to determine how much the FDIC must pay to cover an estimated $1.45 billion tax debt owed by the failed Silicon Valley Bank. The FDIC, which seized SVB and its assets in March 2023, has denied the entire tax claim, according to a complaint filed in federal court in Washington. The IRS said the court should overrule the FDIC’s decision to deny the tax claim, and make a new determination on the validity and amount of taxes owed. The FDIC is acting as a receiver for the bank, gathering the bank’s assets and using them to repay SVB’s creditors. The IRS said its initial $1.45 billion claim was an estimated total for taxes due between 2020 and 2023, and that it was still reviewing SVB’s tax returns when it filed the claim. The IRS later learned that some of the employment taxes included in its claim have already been paid. The IRS and the FDIC did not …